We want to share how we carry out a complete top and bottom analysis to look for an opportunity to enter a trade. Step number one is to go to a high timeframe. In this case, we begin by analyzing the Weekly Chart.
🔸What do we observe here?
🔸The first thing we see is that the price is in a bearish channel since 2014. Every time the price retested the Descending Trendline, it was rejected. Right now the same thing is happening, so we can consider a potential bearish move, at least in the short term.
🔸Obviously, we need more confirmations.
🔸For this, we reduce the timeframe to 4H, and look for the most relevant support and resistance zones. The price is resting in a relevant resistance zone, which supports our bearish view.
🔸And finally, on the one-hour chart, we see that the trend line of the last bullish move was penetrated down after support at Resistance. Also, there is a corrective move. Considering that the current correction is correcting the first bearish impulse, we can expect a bearish continuation of the same proportion as the first impulse.
🔸All this scenario is valid as long as the Resistance zone is not rotated upwards.
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